Pharmacy Merchant Account
Merchants operating in the online pharmacy industry have fewer and fewer options for payment processing. As nearly all merchant account services have been limited to unreliable aggregated accounts, the demand for online pharmaceuticals continues to grow. Providing reliable payment processing services to the online pharmacy industry has been one of EU Paymentz's goals.
Why are Online Pharmacies high risk?
Pharmacies pose a risk to payment processors with the highly regulated products sold through their ecommerce stores. As governments try to keep up with the changes surrounding the drug industry, new regulations and restrictions continue to be of concern. Many of these policies come with stiff fines for offenses, requiring monitoring of both the merchants and payment processors.
As a result, most payment processors have opted to not deal with the potential legal risks stemming from pharmaceutical sales. The payment card networks have also restricted much of what can be sold through their networks. While some payment processors are willing and able to work with the pharmaceutical industry, the options are significantly less for merchants than other industries.
What types of Pharmacy Payment Processing are available?
Pharmaceutical merchants have a few different types of payment procession solutions available. One of the most common is a pharma merchant account for bank card transactions. With a merchant account, businesses can accept credit and debit card payments from merchants; either in their store or online. Merchant accounts are generally restricted, allowing merchants to sell only specific types of medications and face significant regulation on an ongoing basis.
E check processing services is another one of the options that many merchants have utilized either in addition or in lieu of a merchant account. The ability to accept checks allows many pharmacies to remain in business when other merchant services are unavailable. Unlike many of the merchant account solutions heavily monitored by the payment card networks, echecks are regulated by the local laws in the states. This allows merchants to offer a wider variety of products with fewer restrictions.
Another type of solution available to many online pharmacies are aggregated or sponsored merchant accounts. Similar to the merchant accounts above, these types of accounts have multiple different merchants processing transactions through an account. This allows the aggregator to accept a variety of different merchants and spread their transactions out amongst others, reducing their exposure to legal or other regulatory concerns. Though they have higher fees, merchants that might have trouble finding approvals elsewhere will have a better chance at finding approval here.
The final type of merchant account is centered around cryptocurrency. With few restrictions on the types of products that can be sold, cryptocurrency is ideal for use with pharmaceutical products. Merchants will not have to be as concerned with being shut down as they would with other types of payment solutions. Fees for these types of accounts are right in line with many of the costs charged by aggregated or other high risk service providers.
There are a number of different options available for merchants looking to accept pharmacy payments. While costs will vary between different providers and different types of payment methods, pharmacies can find ways to sell products. Contact one of our EU Paymentz providers for more information on accepting payments with your online pharmacy.
What is a Pharmacy Merchant Account?
A merchant account is a financial product that allows businesses to accept payments from customers in a means other than physical currency. Set up through banks or independent payment processors, merchant accounts can accept various payment methods. The most common types of payment methods used by merchants include credit card processing and check processing services.
The most recognizable merchant account type accepts debit and credit cards. Through either a credit card terminal or a payment gateway, merchants are able to accept customer card account numbers and take payment. Payments made with a bank card can be authorized in a matter of seconds, but these highly regulated networks are not always the best solution for pharmacy businesses.
Similar to accepting a bank card, using echeck will draw funds from a customer's bank account. Using the routing and account numbers of the customer, the merchant can make a request through the banking network. Fund take roughly 2 days to arrive into the merchant's bank account. While the settlement time is slightly slower, chargebacks and other problems that plaque credit card merchant accounts are not as common.
Cryptocurrency merchant accounts work like a bank card account, with transactions being sent through a payment gateway for approval. Though the approval process is different than that of a credit or debit card, authorized transactions will notify the merchant that the sale was successful. These transactions generally take longer than a credit or debit card, but merchants will receive a response in a faster time than an echeck.
Merchant accounts can come in different forms, whether they accept bank cards, checks or cryptocurrency. Merchants are not limited to choosing only 1 type of payment, rather most shopping carts will allow to integrate a number of different gateways and payment types. For more information, or for help finding the best solution for your pharmacy, please contact EU Paymentz.
Pharmaceutical Merchant Account Requirements
Merchants looking to open up a merchant account for an online pharmacy will be required to provide certain types of documents. The most common information needed to complete underwriting will include:
- Completed Application
- Copy of Government Issued ID
- Copy of Pharmacuetical License
- Copies of Previous Processing History
- Proof of Bank Funds
An incomplete application can delay the underwriting process significantly. Back and forth between merchants and the payment processors can add days to an already extensive process. Underwriters will need to have all information requested to complete their due diligence to fully understand the merchant and business.
A proper government ID along with a pharmaceutical license is necessary for an approved online pharmacy application. Payment processors want to know that the applicant is the person claimed on the application and that they do not have a negative history with the payment card networks. Pharmaceutical licenses will let the underwriters know where the drugs are being made and allow the processors to verify that they are selling legitimate products.
Financial history may or may not be something required by the underwriters. Most pharmacy payment processors will hold funds from the merchant for a set time period, called a reserve. This helps the payment processor ensure that products are being shipped and customers are happy. Without this fund, payment processors run the risk of merchants experiencing high chargebacks and not having the money to cover refunds.
Providing a full application package will not only speed up the approval process, but it can also help with decreasing the overall rates charged to a merchant. Preparing the necessary documents prior to the application will prevent underwriters from asking for more documents.
Open your Online Pharmacy Merchant Account Today!
Merchants in the online pharmacy industry can contact our team at EU Paymentz to open a merchant account. The payment processing team at EU Paymenetz will help answer any questions merchants might have about accepting payments. We will even be happy to give you an estimate on our rates to see how we can save you money.